RIYADH: Ƶ’s electric vehicle manufacturing endeavors have begun paying off, with the Kingdom’s first EV brand Ceer expected to contribute SR30 billion ($7.9 billion) to its gross domestic product by 2034, according to a ministry release.
The Ministry of Industry and Mineral Resources on Wednesday announced that it had granted Ceer the industrial license to establish an EV manufacturing facility.
The factory, spanning over 1 million sq. meters, will be located in King Abdullah Economic City’s Industrial Valley.
The ministry said the factory would attract over SR562 million in foreign direct investment and create up to 30,000 direct and indirect jobs.
According to the Saudi Press Agency, Jarrah bin Muhammad Al-Jarrah, the official spokesman of the ministry, said the automotive industry is one of the most critical sectors in the National Industrial Strategy.
Al-Jarrah added that the sector represents an attractive opportunity given the size of the market, which is globally expected to double over the next 10 years.
In addition, the automotive industry will also create a strong push for the priority industrial sectors such as minerals and chemicals.
The spokesperson clarified that it would help achieve the Kingdom’s ambitions of exporting to neighboring markets amid its economic diversification efforts.
Furthermore, the sector will also propel the development of knowledge transfer, localization, local content and job opportunities.
“These manufacturing facilities are part of Ƶ’s efforts to diversify its economy and reduce its dependence on oil exports,” Joseph Salem, partner, travel and transport practice at Arthur D. Little Middle East, told Arab News in an interview in April.
Ceer is investing heavily in research and development to produce EVs that can compete with global brands, and the government is providing support through incentives and regulations to encourage industry growth, Salem said.
The Kingdom aims to produce about 300,000 cars by 2030, accounting for 50 percent of car sales in Gulf Cooperation Council countries by 2025.
